The increasing importance of e-commerce was shown today as figures revealed the value of internet sales by UK companies soared by 56% last year to £103bn (€153bn).

Larger businesses – with 1,000 or more employees – have been leading the way in using Information and Communication Technologies (ICTs), the survey by the UK Office for National Statistics found.

Around 15% of firms sold products over the internet last year while 57% made purchases. Internet purchases by businesses rose 50% to £72.8bn (€108bn).

Meanwhile, the value of internet sales to households (including non-UK customers) rose almost 30% to £21.4bn (€32bn), the ONS said.

Nick Gladding, senior research analyst at Verdict Research, said: “The internet is an opportunity for proactive retailers to broaden their reach.”

During the dot.com boom it was assumed that successful online businesses would be the ones that only operated via the internet, but now many of the most successful internet businesses are those that already were physical retailers themselves, he said.
“It is the major retailers such as Tesco and Argos that have driven growth,” he said.

The importance of the internet has been compounding the difficulties experienced on the high street over the past 18 months, he added.

Reporting results earlier this month, Tesco said its Tesco.com operation grew sales by 29% to £554m (€822m) in the first half of the year.

And earlier this week, home shopping retailer N Brown said soaring internet sales helped it post a 16% hike in profits. N Brown said online sales grew by 57% to £52m (€77m) in six months and now represent more than one fifth of all sales.

Yesterday, luxury retail organisation Walpole warned that British luxury retailers have been slow to take part in the online revolution and are around three years behind their US counterparts.